“Japan’s earnings in aggregate have been increasing more than its aggregate stock prices. This remains one of the most attractive regions in global markets from a valuation standpoint—as earnings momentum looks stronger than other regions, and it has relatively low prices to its own history and to other markets,” said WisdomTree Research Director Jeremy Schwartz in a note out last month. [Valuation Opportunities in 2015]
Since 1974, the long-term price-to-book ratio between Japanese and U.S. stocks is around 1.2, but even with a dip below 0.75 since 1991, Japanese stocks are currently deeply discounted compared to U.S. counterparts, according to BlackRock data published earlier this month. [Value in Japan ETFs]
Investors have allocated $1 billion to DXJ this year and $58 million in new assets to DBJP.
Deutsche X-trackers MSCI Japan Hedged Equity ETF
